QIA Restates its Position Following Inaccurate Reporting of Rosneft Transaction

2017-06-08 03:18

LONDON, June 8, 2017 /PRNewswire/ --

The Wall Street Journal has today published an inaccurate story alleging that the recent purchase of 19.5% of Rosneft Oil by Glencore and Qatar Investment Authority ("QIA") included an agreement for Russia to buy back the shares. The newspaper's characterisation of the transaction, and the provisions associated with it, are wholly based on unfounded and ill-informed allegations.

Before publication of the story, both Glencore and QIA informed the WSJ that the allegation of a buy back arrangement was untrue. QIA provided the newspaper with the following on-the-record statement:

"Under the contractual arrangements under which the Rosneft shares were sold, there is no right of Rosneft, Rosneftegaz or the Russian government to buy back the Rosneft shares, directly or indirectly. The consortium alone controls the future ownership of these shares."

"In structuring and completing the Rosneft transaction, QIA was advised by leading international law firms, accountants and investment bankers. Consistent with QIA policy, QIA and its advisors took care to ensure that the transaction was fully compliant with all US and EU sanctions and otherwise in accordance with all applicable laws and regulations."

QIA also noted:

"Qatar Investment Authority ("QIA") is a global financial investor whose mandate is to generate returns over the long term for the benefit of the people of Qatar. QIA invests globally and across all asset classes with the objective of creating value. The investment in Rosneft is an opportunity to realise such value, and is fully aligned with the QIA's broader investment strategy. "

Glencore's on-the-record statement to the WSJ read:

"The transaction did not include an option or agreement for Rosneft, Rosneftegaz or the Russian state to buy the stake or parts of the stake acquired by the Consortium."